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Quarterly Activities and Cashflow Report For the period ended 31 March 2017
FERRUM CRESCENT LIMITED
(Incorporated and registered in Australia and registered as an external company in the Republic of South
Africa)
(Registration number A.C.N. 097 532 137)
(External company registration number 2011/116305/10)
Share code on the ASX: FCR
Share code on AIM: FCR
Share code on the JSE: FCR
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2
28 April 2017
Ferrum Crescent Limited
("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 31 March 2017
Highlights:
Moonlight Iron Project
- Termination of farm-in and joint venture agreement with Business Venture
Investments No. 1709 (Proprietary) Limited (“BVI”) following BVI’s failure to
complete Phase I of the Bankable Feasibility Study by the agreed extended date
- Detailed negotiations held with a new third party group in relation to the potential
development of the Moonlight Project
Spanish lead-zinc exploration projects
- Work programme designed and underway for the Toral Project with the goal of
establishing the presence of mineralisation at surface and then defining the most
prospective areas of mineralisation for a targeted drill campaign
- Targeted areas for sampling sit above mineralisation identified at depths between
370m and 929m by historic drilling which was the subject of a foreign resource
estimate for the purposes of the ASX Listing Rules, comprising of an NI 43-101
compliant Inferred and Indicated foreign mineral resource estimate
- Channel sampling identified first mineralisation near surface, including:
o 0.9m @ 10.5% Zn & 2.5% Pb average on the main structure within Adit 49
o 1.2% Cu, 6.5% Zn & 13.5% Pb returned from a 1.2m channel sample in Adit 54
o Soil sampling identified distinct, continuous zinc-in-soil 2 kilometre anomaly,
approximately 150 metres wide, including peak zinc-in-soil values of 1.4% zinc
- Drill programme plans to intersect shallow untested targets within the main
anomalous area:
o Phase 1 drill programme at the Toral Project designed to intersect mineralising
features at a series of shallow targets which are untested to date
o The two kilometre soil geochemistry anomaly at this depth will be targeted in
three separate zones containing a variety of mineralising styles that will be tested
down to depths of approximately 100m below surface
o The refined programme has been designed with an expected nine firm hole
locations, with an average hole length of 155m for a minimum total to be drilled
of 1,400m
o Five holes are planned for Zone 1, one 250m hole for Zone 2 (which crosses
several separate targets) and three holes for Zone 3. The remaining 700m will be
distributed on a discretionary basis during the drilling programme and may be
used to test continuity at depths down to 150m below surface
Corporate
- New contract terms agreed for FCR’s Executive Chairman, Justin Tooth, to continue
his role as sole executive director of the Company and appointment of Merlin Marr-
Johnson as Project Manager to oversee progression of the Company’s lead-zinc
project portfolio. Proposed adoption of a new equity incentive plan to replace the
Company’s existing equity incentive arrangements to be considered at a general
meeting of shareholders to be held on 11 May 2017
- Laurence Read appointed to the Board as a non-executive Director, replacing Klaus
Borowski who resigned to pursue other interests
- Cash balance at the end of the quarter: A$725,373
Post Quarter End
- Diamond drilling contract signed with Sondeos y Perforaciones Industriales de Bierzo
SA for Phase 1 drill programme at the Toral Project
o Minimum of 1,400m and maximum of 2,100m to be drilled and programme
expected to take up to three months to complete
o Drill cost of EUR80 per metre
- Work completed by FCR has recently identified mineralisation in multiple sub-
vertical, sub-parallel planes and also mineralisation associated with crosscutting
faults. In addition, several different styles of mineralisation have been identified,
complementing data from the channel samples and soil geochemistry reported on 23
February 2017
- Moonlight Project update announced on 27 April 2017 stating that negotiations with
a potential new third party partner had ceased without reaching any viable
agreement. Consequently, the Board of FCR has decided, unless an alternative
development opportunity can be secured in the short term, to undertake an orderly
winding-up and hand-over process in respect of the Group’s operations and licences
associated with the project with a view to terminating all activities and expenditures
in South Africa as soon as practicable
Exploration Interests
The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3
for the quarter ended 31 March 2017:
Project Location Right Number Right Status Holder Percentage
Interest
Moonlight Limpopo 30/5/1/2/2/201 MR Mining Right Ferrum Iron 97%
Province, South Granted Ore (Pty) Ltd
Africa
Moonlight Limpopo LP30/6/1/1/2/11868PR Prospecting Ferrum Iron 97%
Province, South Right Application Ore (Pty) Ltd
Africa
Toral León Province, 15.199 Investigation GoldQuest 100%
Spain Permit Iberica, S.L.
Lago Galicia Lago II 6.056 Lago II GoldQuest 100%
Province, Spain Exploration Iberica, S.L.
Permit
Lago III 6.058 Lago III
Investigation
Permit
No tenements were acquired or disposed of during the quarter.
Justin Tooth, Executive Chairman of FCR, today commented:
“During the quarter under review, we have advanced our lead-zinc assets in Spain smoothly
through channel sampling, soil sampling and mapping activities, culminating in the final
stages of preparation for a drilling campaign. The drill programme is scheduled to start
imminently and is designed to test lead-zinc mineralisation in the top two hundred metres
below the main surface anomalies. Historic work has defined mineralisation at depth and
FCR is now targeting mineralisation at higher levels in the structure, closer to surface.
“The Company has spent considerable time, effort and resources in searching for the right
development partner for the Moonlight Project, but, regrettably, despite our best
endeavours, we have been unable to secure a sustainable path to development. Mindful of
the significant costs involved in maintaining the good standing of the project and the Mining
Licence, we yesterday announced that the Board has decided that, unless an alternative
development opportunity can be secured in the short term, the Company will undertake an
orderly winding-up process for the project leading to the planned relinquishment of the
licences at the earliest opportunity. Thereafter our resources will be increasingly focussed on
the exciting Spanish lead-zinc project we are about to drill at Toral.”
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and Company Secretary
T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative)
T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance
T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh
T (direct): +27 11 459 5037
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014.
APPENDIX 5B:
See attachment to announcement
Notes to Editors:
Further Information on the Spanish lead-zinc Exploration Projects
Toral Project
The wholly owned Toral zinc-lead-silver permit is located near Ponferrada in the west of the
province of León, Autonomous Community of Castile and León, Spain approximately 400km
northwest of Madrid.
The Toral Project has been extensively explored historically by its previous owners Portex Minerals
Inc. and Lundin Mining S.L. and the 2,024ha of mineral rights contains extensive high grade zinc
mineralisation. Located in north-west Spain, approximately 400km north-west of Madrid, the
project’s licence area hosts excellent road, rail and power infrastructure and is situated in a known
historic mining jurisdiction. The asset also has a pre-existing NI 43-101 resource estimate reported
by Micon International Co. Limited on 30 April 2012 (the “NI 43-101 Report”). The NI 43-101 Report
estimated that the project has a NI 43-101 compliant Inferred and Indicated foreign resource
estimate of 8.71Mt at an economic cut-off grade of 7% Pb + Zn (as set out in the Company’s
announcement of 10 November 2016).
Lago Project
The Lago Project is located approximately 54km to the north-east of the Toral Project. Historical
investigations completed by or on behalf of the Spanish mining firm, Exploracion Minera
International Espana S.A. (“EXMINESA”), between 1985 and 1990, indicated that mineralisation at
the Lago Project may be similar to that encountered at the Toral Project with vertical, lenticular
bodies (probably more than one) approximately 800m long by 300m wide.
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
Ferrum Crescent Limited
ABN Quarter ended (“current quarter”)
58 097 532 137 31 March 2017
Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation (79) (177)
(b) development
(c) production
(d) staff costs (107) (291)
(e) administration and corporate costs (299) (1,079)
1.3 Dividends received (see note 3)
1.4 Interest received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material)
1.9 Net cash from / (used in) operating (485) (1,547)
activities
Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (8) (10)
(b) tenements (see item 10)
(c) investments (928)
(d) other non-current assets
2.2 Proceeds from the disposal of:
(a) property, plant and equipment 1 1
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing (7) (937)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 2,828
3.2 Proceeds from issue of convertible notes
3.3 Proceeds from exercise of share options
3.4 Transaction costs related to issues of (23) (245)
shares, convertible notes or options
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and
borrowings
3.8 Dividends paid
Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
3.9 Other (provide details if material)
3.10 Net cash from / (used in) financing (23) 2,583
activities
4. Net increase / (decrease) in cash and cash
equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 1,293 743
4.2 Net cash from / (used in) operating (485) (1,547)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing (7) (937)
activities (item 2.6 above)
4.4 Net cash from / (used in) financing (23) 2,583
activities (item 3.10 above)
4.5 Effect of movement in exchange rates on (53) (117)
cash held
4.6 Cash and cash equivalents at end of 725 725
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to
the related items in the accounts
5.1 Bank balances 725 1,293
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 725 1,293
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in 83
item 1.2
6.2 Aggregate amount of cash flow from loans to these parties
included in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
7. Payments to related entities of the entity and their associates Current quarter
$A'000
7.1 Aggregate amount of payments to these parties included in
item 1.2
7.2 Aggregate amount of cash flow from loans to these parties
included in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities
8.2 Credit standby arrangements
8.3 Other (please specify)
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or
are proposed to be entered into after quarter end, include details of those facilities as well.
9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 300
9.2 Development
9.3 Production
9.4 Staff costs 110
9.5 Administration and corporate costs 220
9.6 Other (provide details if material)
9.7 Total estimated cash outflows 630
10. Changes in Tenement reference and Nature of Interest Interest
tenements location interest at at end
(items 2.1(b) and beginning of
2.2(b) above) of quarter
quarter
10.1 Interests in mining
tenements and
petroleum
tenements lapsed,
relinquished or
reduced
10.2 Interests in mining
tenements and
petroleum
tenements acquired
or increased
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: Date: 28 April 2017
Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities have
been financed for the past quarter and the effect on its cash position. An entity that wishes to
disclose additional information is encouraged to do so, in a note or notes included in or
attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting
Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this
quarterly report has been prepared in accordance with other accounting standards agreed by
ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this
report.
3. Dividends received may be classified either as cash flows from operating activities or cash
flows from investing activities, depending on the accounting policy of the entity.
Date: 28/04/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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